SEC chief Gary Gensler has stated that the growing size of the crypto market has necessitated the need for a regulatory framework. Gensler went as far as to claim that the industry would fail to sustain itself without a regulatory regime in place.
Public Policy Framework A Necessity
In the next 5 to 10 years, the crypto market’s future will be safe “within a public policy framework,” the former blockchain professor at MIT told Financial Times.
Gensler further said that platforms will risk losing customer trust by fighting calls to embrace the regulatory framework proposed by officials. The statement comes at a time when the crypto industry has attained a market cap of $2.23 trillion, with Bitcoin (BTC) trading near $50,000.
According to the chief of the Securities and Exchange Commission (SEC), there are many cryptocurrencies that fulfill the criteria to be categorized as securities. Gensler firmly believes that the DeFi sector and exchange platforms would be putting their future at risk by defying to comply and register with the SEC.
Investor Protection A Top Priority
Focused on investor protection, the SEC chairman is weighing up stronger regulatory measures. In fact, the SEC has sought more power from Congress to regulate the crypto sector more efficiently.
This is not the first time an official has emphasized the need for a public policy framework to ensure the survival of the crypto market in the US. Authorities like CFTC and IRS have also subjected the crypto market to regulatory scrutiny in the past over investor security concerns.